What to Know Before Refinancing Your Home Loan
refinancing your home loan is whether doing so is actually the best financial option for you. Using a mortgage refinancing calculator can help you get an idea of how much you would save by changing the terms of your loan. As we’ll discuss below, refinancing your home loan can cost a significant chunk of money. As such, it’s also important to calculate your break-even point. The break-even point refers to the point at which the costs of refinancing equals the savings you’ll make. If it will take a substantial amount of time for your refinance to pay for itself or if you plan on moving before or shortly after your break even point, then you may not want to reconsider refinancing.
Refinancing costs can be steep
You can end up saving a considerable amount of money by refinancing your home loan, but the process of refinancing will require a bit of an investment. Before jumping into a refinance, you should prepare to pay a variety of different costs. Examples of expenses homeowners will likely face during the refinancing process of their home loans include an application fee, lender’s attorney review fees, and closing costs, which can vary between two and six percent of the refinanced loan amount. Coming up with the funds or a plan to pay for such expenses is essential before you start the home loan refinance process.
It’s important to shop around
Refinancing your home loan is all about getting the most beneficial deal possible. To do so, it’s important to shop around and get quotes from several different lenders. Sticking with the same lender as your original loan may seem like the easiest choice, but it’s important to know what other options you have so that you don’t miss out on a good deal. Ideally, homeowners looking to refinance should get quotes from at least three different home loan lenders. When shopping around, make sure to take a look at lender reviews and ask plenty of questions to determine if they’re the best possible option. Streamline Mortgage is a leading home loan and hard money lender in Henderson, Nevada. If you’re interested in refinancing your home loan, Streamline Mortgage can help you complete the process smoothly and efficiently. To start the refinancing process, contact us today.